MKT 430 Exam 3 C7

Identify a way in which multinationals can make money in developing countries while still protecting their intellectual property rights. by adjusting their prices based on the comparative income levels in developing countries by avoiding the use of local content in their products by increasing the imports and decreasing the exports of their host countries by populating their workforce primarily with foreign labor supply

by adjusting their prices based on the comparative income levels in developing countries

An investment in a _____ is prohibited under Islamic law. real-estate agency life-insurance agency poultry farm casino

casino

Select all that apply Which of the following information is useful to include in an arbitration clause? (Check all that apply.) The term of the original contract The number of arbitrators The language to be used during arbitration The place of arbitration

The number of arbitrators The language to be used during arbitration The place of arbitration

Select all that apply Identify the agreements required in arbitration clauses. (Check all that apply.) The parties must agree to abide by the rules of the arbitrating organization. The parties must agree to allow the statements made during the arbitration sessions to be used as evidence in further litigation. The parties must agree to honor the judgment rendered by the arbitrator. The parties must agree to make all proceedings available to the public.

The parties must agree to abide by the rules of the arbitrating organization. The parties must agree to honor the judgment rendered by the arbitrator.

According to the European Patent Convention (EPC), trademark protection is forfeited if not used within _____ years. 3 7 5 10

5

Which of the following is true of e-commerce? It is difficult to establish the contractual validity of electronic communications. It is easy to determine jurisdiction in legal disputes between parties located in different countries. It is difficult to purchase and register domain names. It is easy to establish the permanence of companies and ensure the collection of taxes.

It is difficult to establish the contractual validity of electronic communications.

Match the following levels in the Arab League Boycott of Israel (in the left column) with the corresponding bans (in the right column). A primary boycott A secondary boycott A tertiary boycott It bans Arab governments from doing business with companies that engage in trade with with Israel. It bans Arab governments from doing business with companies that engage in trade with with Israel. It bans Arab governments from doing business with companies that have relationships with companies engaged in trade with with Israel.

A primary boycott -- It bans direct trade between Arab states and Israel. A secondary boycott -- It bans Arab governments from doing business with companies that engage in trade with with Israel. A tertiary boycott -- It bans Arab governments from doing business with companies that have relationships with companies engaged in trade with with Israel.

Which of the following statements is true? The World Court to settles all disputes between private citizens and companies. The world has a judicial body to deal with legal commercial problems arising among citizens of different countries. Legal systems determine jurisdiction based on the number of parties bound by the contract. It is difficult to settle commercial disputes between private citizens due to differing legal systems in each nation involved.

It is difficult to settle commercial disputes between private citizens due to differing legal systems in each nation involved.

Which statement about the arbitration procedure is true? Most arbitration is conducted by formal arbitration groups dedicated to resolving commercial disputes. Arbitration causes a higher loss of confidentiality to the parties and referees involved than litigation does. Arbitration groups do not have formal rules for the process or experienced arbitrators to assist. Decisions reached in formal arbitration are not enforceable by law in most countries.

Most arbitration is conducted by formal arbitration groups dedicated to resolving commercial disputes.

Identify a true statement regarding the application of U.S. laws in host countries. A U.S. citizen is subject to the laws of the United States only within the boundaries of the country. A U.S. citizen is allowed to take a bribe if it is routine in the host country. Businesses that operate outside of their home country are not exempt from home-country laws. The activities that are illegal for an American firm at home cannot be illegal for a U.S. firm in foreign jurisdictions.

Businesses that operate outside of their home country are not exempt from home-country laws.

Select all that apply Identify the remedies available to American companies to combat violations of intellectual property rights. (Check all that apply.) Register IP with appropriate agencies in the host country. Register a complaint with the U.S. government and World Trade Organization. Establish rights in the United States. Notify the local authorities. Negotiate and pursue alternative methods of resolving disputes.

Register IP with appropriate agencies in the host country. Register a complaint with the U.S. government and World Trade Organization. Notify the local authorities. Negotiate and pursue alternative methods of resolving disputes.

______ law is built around a comprehensive collection of written rules. Interpretive English Code Common

Code

_____ law is based on the previous decisions of higher courts as applied to the same or similar circumstances. Code Civil Commercial Common

Common

_____ is a legal system that comes from English law and is practiced in England, the United States, and Canada. Civil law Code law Common law Islamic law

Common law

Match the legal system (in the left column) with the corresponding law governing intellectual property (in the right column). Common law Code law Ownership is determined by use Ownership is established by registration

Common law -- Ownership is determined by use Code law -- Ownership is established by registration

Match the following terms related to compliance with Islamic law in financial transactions (in the left column) with the corresponding Arabic terminology (in the right column). Cost-plus sale Leasing Murabaha Ijara

Cost-plus sale -- Murabaha Leasing -- Ijara

Identify a problem related to the protection of intellectual property. Copyrighting Counterfeiting Licensing Patenting

Counterfeiting

--- register Web names and descriptive nouns similar to an existing product or business in order to sell them at an inflated price. (Remember to type only one word in the blank.)

Cybersquatters

_____ restricts advertising directed at children. Belgium The United states India Denmark

Denmark

True or false: All socialist countries have the same pattern for the development of a commercial legal system. True False

False

True or false: Due to the Foreign Corrupt Practices Act (FCPA), U.S. businesses must resort to bribery in order to survive in the most corrupt societies. True False

False

True or false: It is easy to determine when and where an online sale takes place. True False

False

True or false: Piracy is always harmful to a company. True False

False

Match each phase in the German green marketing laws (in the left column) with the corresponding implementation (in the right column). First phase Second phase Third phase It required manufacturers and distributors to accept and recycle transport packaging. It required manufacturers, distributors, and retailers to accept and recycle secondary packaging. It requires retailers, distributors, and manufacturers to accept sales packaging for recycling.

First phase -- It required manufacturers and distributors to accept and recycle transport packaging. Second phase -- It required manufacturers, distributors, and retailers to accept and recycle secondary packaging. Third phase -- It requires retailers, distributors, and manufacturers to accept sales packaging for recycling.

Which of the following countries has the most rigorous laws regarding the recycling of packaging waste? Germany China The United States India

Germany

Match the countries (in the left column) with their corresponding legal system (in the right column). Germany, Japan, and France Pakistan, Iran, and Saudi Arabia Russia, Eastern Europe, and China A commercial legal system based on the economic, political, and social policies of the state Islamic law Civil law

Germany, Japan, and France -- Civil law Pakistan, Iran, and Saudi Arabia -- Islamic law Russia, Eastern Europe, and China -- A commercial legal system based on the economic, political, and social policies of the state

Identify a difference between common law and code law. In the context of performance of a contract, code law extends acts of God to include include unforeseeable human acts, whereas common law does not. In the context of intellectual property, common law establishes ownership by registration, whereas code law determines ownership by use. Common law is based on an all-inclusive system of written rules of law, whereas code law is based on tradition, past practices, and legal precedents. Code law is recognized as not being all-inclusive, whereas common law is considered complete.

Identify a difference between common law and code law.

Select all that apply In international legal disputes, in which ways is jurisdiction is determined? (Check all that apply.) Through contract clauses stipulating jurisdiction Based on the country in which the contract was entered into Based on the number of parties bound by the contract Based on where the obligations of the contract were completed

Through contract clauses stipulating jurisdiction Based on the country in which the contract was entered into Based on where the obligations of the contract were completed

Select all that apply In international legal disputes, in which ways is jurisdiction is determined? (Check all that apply.) Through contract clauses stipulating jurisdiction Based on the country in which the contract was entered into Based on where the obligations of the contract were completed Based on the number of parties bound by the contract

Through contract clauses stipulating jurisdiction Based on the country in which the contract was entered into Based on where the obligations of the contract were completed

The _____ protects established intellectual property rights across most of Latin America and the United States. Inter-American Convention Madrid Arrangement Patent Cooperation Arrangement European Patent Convention

Inter-American Convention

Which statement is true of Islamic law? It lacks laws that regulate human acts. It encompasses religious duties and obligations only. It addresses issues such as property rights and economic decision making. It permits gambling and the payment of interest.

It addresses issues such as property rights and economic decision making.

Identify a purpose of antitrust enforcement in international commerce. It aims to ensure that American businesses are not hampered by unfair restrictions imposed by more powerful competitors. It aims to pressure foreign businesses into purchasing U.S. goods and services. It aims to give U.S. businesses an explicit advantage over foreign competitors. It aims to protect the most profitable U.S. businesses from competition.

It aims to ensure that American businesses are not hampered by unfair restrictions imposed by more powerful competitors.

Identify a function of the World Court. It can settle disputes between governments. It can settle disputes between private citizens and companies. It can settle disputes between two companies. It can settle disputes between a company and a government.

It can settle disputes between governments.

Identify a true statement about e-commerce. It is easy to trace sales in cyberspace. It considers a server to be proof of the permanence of an establishment. It is not susceptible to cybersquatters. It faces issues regarding the collection of taxes.

It faces issues regarding the collection of taxes.

Identify a feature of litigation. It involves lawsuits in public courts. It helps preserve the confidentiality of the disputing parties. It is an informal, friendly negotiation that is usually the first step in resolving a dispute. It uses a disinterested and informed third party to settle a dispute.

It involves lawsuits in public courts.

Identify a true statement regarding the application of laws to e-commerce. It is difficult to determine which country's laws apply in legal disputes between parties located in different countries. It is easy to identify contractual obligations in electronic communications. It is easy to establish the permanence of a company and ensure the collection of taxes. It is difficult to purchase and register Web names.

It is difficult to determine which country's laws apply in legal disputes between parties located in different countries.

Identify a feature of code law. It is considered incomplete due to a lack of catch-all provisions for different situations. It is not all-inclusive. It is usually divided into three separate codes: commercial, civil, and criminal. It is based on tradition, past practices, and legal precedents set by the courts.

It is usually divided into three separate codes: commercial, civil, and criminal.

Select all that apply Identify the features of the U.S. antiboycott law. (Check all that apply.) It requires U.S. companies to report any requests for participation in a boycott. It allows U.S. firms to participate in foreign boycotts if they result in increased exports and foreign exchange. It permits participation in a boycott if it has direct impact on the survival of a company. It prohibits U.S. companies from taking part in foreign boycotts not sanctioned by the U.S. government.

It requires U.S. companies to report any requests for participation in a boycott. It prohibits U.S. companies from taking part in foreign boycotts not sanctioned by the U.S. government.

Select all that apply Identify the requirements of the Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement. (Check all that apply.) It requires participating members to join the European Patent Convention (EPC). It requires participating members to revert patents back to the public domain if the products are not produced within one year. It requires participating members to establish procedures for enforcing IP rights. It requires participating members to comply with the minimum intellectual property rights standards by 2006.

It requires participating members to establish procedures for enforcing IP rights. It requires participating members to comply with the minimum intellectual property rights standards by 2006.

Identify a feature of Islamic law. Its dominant objective is social justice. It encompasses religious duties and obligations only. It lacks laws that regulate human acts. It does not have specific laws that govern property rights.

Its dominant objective is social justice.

The _____ is the most in-depth multilateral agreement on intellectual property so far. Anti-Counterfeiting Trade Agreement (ACTA) EU Directive on the Enforcement of Intellectual Property Rights (IPRED) Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement Substantive Patent Law Treaty (SPLT)

Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement

Identify a feature of the European Patent Convention (EPC). Protection is forfeited if a trademark is not used within 2 years. Trademark protection lasts for 10 years. Companies have to apply for protection in all 28 member states. Trademark protection is non-renewable.

Trademark protection lasts for 10 years.

True or false: Multinational companies can be subject to antitrust charges in multiple countries. True False

True

True or false: The number of attorneys per capita can be used to gauge the importance of the legal system in a country. True False

True

Shari'ah law mandates social and economic behavior based on interpretation of the ---. (Enter one word in the blank.)

Koran

Korea Japan Everyone should benefit from the thoughts of one person. Technological advancements should be shared rather than kept confidential.

Korea -- Everyone should benefit from the thoughts of one person. Japan -- Technological advancements should be shared rather than kept confidential.

Which statement is true regarding Marxist-socialist tenets? They are based on interpretations of the Koran. Law is strictly based on the past decisions of higher courts. They prohibit the payment of interest. Law is subordinate to the state's specific economic conditions.

Law is subordinate to the state's specific economic conditions.

Select all that apply Which of the following laws apply to U.S. businesses regardless of where they operate? (Check all that apply.) Laws against participating in an unauthorized boycott Laws against accepting bribes Laws that prohibit using local content from host countries in products Laws against trading with the enemy

Laws against participating in an unauthorized boycott Laws against accepting bribes Laws against trading with the enemy

The _____ protects intellectual property rights across 26 European countries and created the Bureau for International Registration of Trademarks. Paris Convention International Chamber of Commerce Madrid Arrangement Inter-American Convention

Madrid Arrangement

Identify the nucleus of the Islamic system of law. Laws regulating marriage Prohibition of the receipt and payment of interest Laws regulating divorce Prohibition of alcohol consumption

Prohibition of the receipt and payment of interest

Which statement is true regarding conciliation? The statements made by the parties can used as evidence in any subsequent litigation or arbitration. Sessions between the parties and the mediator are private and confidential. The statements made by the parties are disclosed to an international court. The conciliation procedure involves lawsuits and hearings in public courts.

Sessions between the parties and the mediator are private and confidential.

_____ is the Arabic term for Islamic law. Shari'ah Salat Sawm Shahadah

Shari'ah

Select all that apply Identify the deterrents to litigation. (Check all that apply.) The need for mediators and referees. The fear of creating a negative public image. Excessive loss of money and time. The loss of confidentiality.

The fear of creating a negative public image. Excessive loss of money and time. The loss of confidentiality.

The extraterritoriality of U.S. laws can cause disputes when _______. U.S. MNCs are held liable for the human-rights abuses of foreign governments U.S. law conflicts with the economic or political interests of a host country host countries forbid the use of local content in the products of foreign MNCs host countries seek shared ownership with U.S. multinationals as a condition for investment

U.S. law conflicts with the economic or political interests of a host country

Rank the following countries' use of the legal system to settle commercial disputes, based on the number of attorneys per capita in each country. Place the country that relies most heavily on the legal system at the top. United Kingdom China Japan United States

United States United Kingdom Japan China

Identify a wrong assumption made by multinational companies. Engaging in litigation will result in a poor image and a loss of confidentiality for the company. The rightful ownership of property can be easily established because their company has established rights in the United States. Using local content in their product will help boost relations with host countries. Shared ownership of investments will improve relations with host countries.

The rightful ownership of property can be easily established because their company has established rights in the United States.

Which of the following statements is true? Disputes between citizens of different nations are adjudicated under a supranational system of laws. The World Court can adjudicate disputes between two companies. The International Court of Justice handles all commercial issues between nation states. There is no judicial body to address commercial disputes between citizens of different countries.

There is no judicial body to address commercial disputes between citizens of different countries.

Which of the following statements is true? The World Court can adjudicate disputes between two companies. There is no judicial body to address commercial disputes between citizens of different countries. The International Court of Justice handles all commercial issues between nation states. Disputes between citizens of different nations are adjudicated under a supranational system of laws.

There is no judicial body to address commercial disputes between citizens of different countries.

Select all that apply In the context of Islamic law regarding financial transactions, identify the advantages of using cost-plus sales and leasing. (Check all that apply.) They enable investment in high-profit businesses that deal with alcohol and casinos. They ensure a fair distribution of wealth. They ensure that profits and losses are shared between borrowers and lenders. They enable a financier of real property to earn interest on his or her capital.

They ensure a fair distribution of wealth. They ensure that profits and losses are shared between borrowers and lenders.

Identify a step that multinational companies must take in order to be successful in the world marketplace. They need to avoid the use of local content in their products. They need to populate their workforce in host countries with foreign labor supply. They need to take adequate steps to legally protect their intellectual property. They need to increase the imports and decrease the exports of host countries.

They need to take adequate steps to legally protect their intellectual property.

After a dispute arises between parties, the likelihood of securing agreement for arbitration increases when the disputing parties want an informal, friendly negotiation to solve the problem. a provision for arbitration of any dispute is incorporated as part of a contract. a formal domestic or international tribunal exists in the place of arbitration. the disputing parties want to file lawsuits in public courts.

a provision for arbitration of any dispute is incorporated as part of a contract.

Select all that apply Islamic law prohibits investment in businesses that deal with _____. (Check all that apply.) cost-plus sales alcohol poultry gambling

alcohol gambling

The use of an independent third party to render a judgment that both disputing parties agree to honor is known as the ---- procedure.

arbitration

The most likely reason for the restriction on advertising directed at children in some countries is _____. growing materialism illiteracy childhood obesity poverty

childhood obesity

The most likely reason for the restriction on advertising directed at children in some countries is _____. poverty growing materialism illiteracy childhood obesity

childhood obesity

Tradition and past rulings by the courts form the basis of --- law.

common

A country considers an individual to be the rightful owner of intellectual property if he or she can prove that he or she was the first person to use it. This country is most likely a _____ country. common-law civil-law code-law religious-law

common-law

A nonbinding agreement to resolve disputes by way of a third party is known as ---.

conciliation or mediation

Unlike common law, code law is _____. considered complete as a result of catchall provisions found in most code-law systems derived from English law and found in England, the United States, and Canada recognized as not being all-inclusive based on tradition, past practices, and legal precedents set by the courts

considered complete as a result of catchall provisions found in most code-law systems

Intellectual property laws in the United States are designed to _____. share technology among businesses that find it useful have individual discoveries benefit all of society encourage innovation promote competition in the world marketplace

encourage innovation

In the context of common law regarding the performance of a contract, which of the following is considered to be an act of God? civil strife labor strikes floods terrorism

floods

The most noticeable difference between common-law and code-law systems is found in the laws governing _____. human rights intellectual property homicide property loans

intellectual property

Unlike code law, common law _____. is based on an all-inclusive system of written rules of law contains catchall provisions found in most code-law systems is not all-inclusive contains three separate codes: commercial, civil, and criminal

is not all-inclusive

Unlike code law, common law _____. is based on an all-inclusive system of written rules of law contains three separate codes: commercial, civil, and criminal contains catchall provisions found in most code-law systems is not all-inclusive

is not all-inclusive

Antitrust enforcement protects American consumers by _____. making sure that U.S.-based firms that export goods are not allowed to compete on merit enforcing the use of foreign labor supply in American multinationals in host countries making sure that they have access to the products and ideas of foreign and domestic competitors ensuring that local content from host countries is not used in American products

making sure that they have access to the products and ideas of foreign and domestic competitors

In the context of international dispute resolution, the conciliation process _____. displays a weak track record for conflict resolution uses a disinterested, informed party as a referee to determine the merits of a case and make a judgment that both parties agree to honor may not use statements made by the parties as evidence in any other legal proceedings involves lawsuits in public courts

may not use statements made by the parties as evidence in any other legal proceedings

In the context of international dispute resolution, conciliation is also known as _____. arbitration mediation litigation subornation

mediation

In the context of international dispute resolution, conciliation is also known as _____. mediation litigation subornation arbitration

mediation

Select all that apply Difficulties in arbitration arise when parties refuse to _____. (Check all that apply.) name arbitrators make arbitration proceedings public honor the arbitration awards file their lawsuits in public courts

name arbitrators honor the arbitration awards

In Islamic law, profiting from excess interest or usury is known as shahadah. salat. riba. zakat.

riba.

U.S. law may conflict with the economic or political aims of a host country when _______. the U.S. government restricts joint ventures in a foreign country due to concerns over anticompetition laws U.S.-based MNCs seek to use local content from a host country in their products the U.S. Justice Department does not hold MNCs responsible for the human-rights abuses of foreign governments U.S.-based MNCs prefer to populate their workforce with domestic labor from the host country

the U.S. government restricts joint ventures in a foreign country due to concerns over anticompetition laws

In the twentieth century, antitrust laws were either not established or were rarely enforced in most countries except for _____. the Soviet Union Mexico the United States China

the United States

In the the context of the Foreign Corrupt Practices Act (FCPA), most experts agree that _____. U.S. exports to developed and developing countries are being adversely affected the FCPA is extremely detrimental to the interests of MNCs the majority of U.S. firms are operating within the law U.S. firms are unable to compete and survive without resorting to bribery

the majority of U.S. firms are operating within the law

Cybersquatting abuses, parody sites, protest sites, and hate sites can be difficult to prevent because _____. the right to free speech is protected the addresses are encrypted they use popular domain names they generate a lot of traffic

the right to free speech is protected